What Is Dollar-Cost Averaging (DCA)?
From the SB Advisors Academy money glossary · Free, no signup
Investing a fixed dollar amount at regular intervals regardless of the market price, so you buy more shares when prices are low and fewer when prices are high.
A worked example
You invest $200 every month in an index fund. Some months shares cost $50 and you get 4. Some months they cost $40 and you get 5. Over time your average cost smooths out.
Category
Part of the "Investing Basics" group in the money glossary.